The New Zealand government has removed life and health insurers from its climate-related disclosure regime.

The “commonsense fix” cuts red tape for companies unaffected by climate change, according to Commerce Minister Cameron Brewer.

“Unlike general insurers, health and life insurers aren’t directly exposed to climate risks like extreme weather events, so there’s little value in making them report on it,” he said. “They’ve told us they don’t belong in the climate reporting regime, as ultimately it adds cost to their clients.”

Nine life and health insurers are expected to benefit, and the Financial Markets Authority says they will not be expected to lodge annual statements before the legislation changes.

The regulator will take a “no action” approach until the legislation is passed. FMA general counsel Liam Mason says this will avoid unnecessary compliance costs.

“We recognise that some affected life and health insurers may choose to continue to produce climate statements on a voluntary basis after the amending legislation is enacted and the thresholds for reporting are changed,” he said.

“These entities are reminded that the fair dealing provisions in part 2 of the Financial Markets Conduct Act will continue to apply to representations made in voluntary reporting.”